We do all, of course, want the UK to be a beacon of shining hope in this perilous and depressing world. Therefore we should welcome the claims being made by the Labour Party about its wondrous new minimum wage offer:
Labour have promised an immediate pay rise of up to £6,000 for minimum wage workers.
And the party has vowed its ‘real’ living wage would mean at least £9,000 more in the pockets of workers by 2024 than the Tories.
Workers who currently earn a minimum wage job would get an immediate pay rise of between £3,444 and £5,986 under the party’s plans.
Their promise to immediately introduce a £10-an-hour Real Living Wage for all workers over 16 will give approximately 7.5 million people a pay rise, including more than 1.2 million young people, according to their analysis of ONS figures on earnings.
That’ll be government determining the wages of some 25% of the workforce. And price fixing always works so well, doesn’t it?
That is, this really is going to make Britain that shining beacon – of what not to do. If it gets implemented then the textbooks are going to be talking about this for decades into the future. Here’s what happens when minimum wages are too high. The definition of too high being what Grandpa Death brought in in 2019 in the UK.
By the way, just to lay down a prediction of what will happen. A substantial and sustained rise in the unemployment rate for those 16 to 18 and a large, but smaller, rise in that for those 18 to 24. Our definition here being compared to the unemployment rate for those 25 and older.